Bespoke Extracts Narrows Losses Amid Revenue Surge, Going Concern Doubts Linger

TL;DR

**BSPK is burning cash and drowning in debt, making its revenue growth a mirage; steer clear unless you're betting on a miracle capital raise.**

AI Summary

Bespoke Extracts, Inc. (BSPK) reported a net loss of $205,106 for the three months ended June 30, 2025, an improvement from a net loss of $260,895 in the same period of 2024. For the six months ended June 30, 2025, the net loss was $465,627, down from $575,013 in the prior year. Revenue increased significantly, reaching $390,553 for the three months ended June 30, 2025, up 40.4% from $278,163 in 2024, and $653,712 for the six months, a 21.4% increase from $538,591. Gross profit also rose to $197,499 for the quarter and $308,278 for the six months. Despite revenue growth, the company faces substantial doubt about its ability to continue as a going concern, evidenced by negative cash flows from operations of $103,942, a working capital deficit of $1,330,730, and an accumulated deficit of $26,869,743 as of June 30, 2025. Total liabilities increased to $2,806,344 from $2,451,026 at December 31, 2024, driven by a rise in accounts payable and accrued liabilities to $1,344,241.

Why It Matters

This filing reveals Bespoke Extracts' precarious financial health despite notable revenue growth. For investors, the 'going concern' warning and substantial accumulated deficit of $26,869,743 signal high risk, indicating potential dilution or operational curtailment if new financing isn't secured. Employees and customers might face uncertainty given the company's reliance on future profitability or external funding. In the competitive regulated cannabis market, BSPK's inability to generate positive cash flow from operations ($103,942 negative for six months) puts it at a disadvantage against better-capitalized rivals, making its long-term viability questionable without significant strategic changes or capital infusion.

Risk Assessment

Risk Level: high — The company explicitly states 'substantial doubt about the Company's ability to continue as a going concern' due to negative cash flows from operations of $103,942 for the six months ended June 30, 2025, a working capital deficit of $1,330,730, and an accumulated deficit of $26,869,743. Cash reserves are critically low at $1,363 as of June 30, 2025, down from $60,305 at December 31, 2024.

Analyst Insight

Investors should exercise extreme caution and consider avoiding BSPK stock due to the explicit 'going concern' warning and severe financial distress. The company's reliance on future financing to meet obligations, coupled with a significant accumulated deficit and minimal cash, presents an unacceptably high risk profile. Monitor for any successful capital raises or sustained profitability before considering an investment.

Financial Highlights

debt To Equity

N/A

revenue

$653,712

operating Margin

-62.3%

total Assets

$267,038

total Debt

$2,806,344

net Income

$ (465,627)

eps

$ (0.04)

gross Margin

47.2%

cash Position

$1,363

revenue Growth

21.4%

Key Numbers

• $653,712 — Six-month Sales (Increased 21.4% from $538,591 in 2024)
• $465,627 — Six-month Net Loss (Improved from $575,013 in 2024)
• $1,330,730 — Working Capital Deficit (Significant deficit as of June 30, 2025, indicating liquidity issues)
• $26,869,743 — Accumulated Deficit (Large deficit as of June 30, 2025, highlighting historical losses)
• $1,363 — Cash Balance (Critically low cash as of June 30, 2025, down from $60,305 at year-end 2024)
• $103,942 — Net Cash Used in Operating Activities (Negative cash flow for the six months ended June 30, 2025)
• $849,500 — Note Payable - Related Party (Significant debt owed to an affiliate of the CEO, due June 30, 2026)
• 11,153,220 — Common Shares Outstanding (As of August 26, 2025)
• $2,806,344 — Total Liabilities (Increased from $2,451,026 at December 31, 2024)
• 40.4% — Quarterly Sales Growth (Increase in sales for the three months ended June 30, 2025, compared to 2024)

Key Players & Entities

• Bespoke Extracts, Inc. (company) — registrant
• Bespoke Extracts Colorado, LLC (company) — wholly owned subsidiary operating a marijuana infused products production facility
• Michael Feinsod (person) — Chief Executive Officer of Bespoke Extracts, Inc.
• Infinity Management, LLC (company) — affiliate of Michael Feinsod and related party lender
• SEC (regulator) — Securities and Exchange Commission
• $205,106 (dollar_amount) — net loss for the three months ended June 30, 2025
• $390,553 (dollar_amount) — sales for the three months ended June 30, 2025
• $1,330,730 (dollar_amount) — working capital deficit as of June 30, 2025
• $26,869,743 (dollar_amount) — accumulated deficit as of June 30, 2025
• $1,363 (dollar_amount) — cash at end of period June 30, 2025

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company faces substantial doubt about its ability to continue as a going concern due to negative cash flows from operations of $103,942 for the six months ended June 30, 2025, a working capital deficit of $1,330,730, and an accumulated deficit of $26,869,743 as of June 30, 2025. The company's ability to continue is dependent on generating profitable operations and/or obtaining necessary financing.
• Deteriorating Cash Position [high — financial]: The cash balance has critically decreased from $60,305 at December 31, 2024, to $1,363 as of June 30, 2025. This represents a significant reduction and highlights immediate liquidity challenges.
• Increasing Liabilities [medium — financial]: Total liabilities have increased to $2,806,344 as of June 30, 2025, from $2,451,026 at December 31, 2024. This increase is primarily driven by a rise in accounts payable and accrued liabilities to $1,344,241.
• Significant Related Party Debt [medium — financial]: The company has a Note Payable - Related Party of $849,500, due June 30, 2026. This significant debt owed to an affiliate of the CEO represents a substantial financial obligation.
• High Operating Expenses [medium — operational]: Despite revenue growth, total operating expenses for the six months ended June 30, 2025, were $715,574, which is still higher than the gross profit of $308,278 for the same period, contributing to the net loss.

Industry Context

Bespoke Extracts operates within the regulated cannabis market in the United States, specifically in Colorado. This industry is characterized by complex state-level regulations, evolving consumer preferences, and significant competition from both licensed operators and potentially the illicit market. The production of infused cannabis products requires specialized facilities and adherence to strict quality control and safety standards.

Regulatory Implications

Operating in the cannabis industry subjects Bespoke Extracts to stringent regulatory oversight at the state level, including licensing, product testing, and marketing restrictions. Non-compliance can lead to fines, license suspension, or revocation. Furthermore, the federal prohibition of cannabis creates ongoing legal and financial uncertainties, impacting banking relationships and interstate commerce.

What Investors Should Do

1. Monitor cash burn rate closely: The company's extremely low cash balance ($1,363) and negative operating cash flow ($103,942 for six months) necessitate immediate attention. Investors should assess any new financing efforts or cost-cutting measures.
2. Evaluate the path to profitability: While revenue is growing, operating expenses remain high, leading to continued net losses. Investors need to see a clear strategy for achieving sustainable profitability.
3. Assess the impact of related party debt: The $849,500 note payable to a related party due in June 2026 is a significant obligation. Investors should understand the terms and the company's ability to repay this debt.
4. Understand the going concern implications: The explicit mention of substantial doubt about the company's ability to continue as a going concern is a critical warning sign that requires thorough investigation into management's plans.

Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reported net loss of $205,106 and revenue of $390,553. Cash balance significantly reduced to $1,363. Working capital deficit of $1,330,730 and accumulated deficit of $26,869,743.
• 2024-06-30: End of Second Quarter 2024 — Reported net loss of $260,895 and revenue of $278,163. Cash balance was $24,791.
• 2026-06-30: Maturity Date for Related Party Note Payable — The $849,500 note payable to a related party is due on this date, representing a significant future cash outflow.

Glossary

Going Concern

An accounting assumption that a company will continue to operate for the foreseeable future. If there is substantial doubt about this, it must be disclosed. (The company's financial statements are prepared under this assumption, but substantial doubt exists due to negative cash flows and deficits.)

Working Capital Deficit

Occurs when current liabilities exceed current assets, indicating a potential short-term inability to meet obligations. (Bespoke Extracts has a significant working capital deficit of $1,330,730 as of June 30, 2025, highlighting liquidity concerns.)

Accumulated Deficit

The total net losses a company has incurred since its inception, reducing retained earnings. (Bespoke Extracts has a large accumulated deficit of $26,869,743, reflecting its history of unprofitability.)

Stockholders' Deficit

The negative equity position of a company when total liabilities exceed total assets. (The company has a total stockholders' deficit of $2,539,306 as of June 30, 2025.)

Net Loss Per Common Share

The portion of a company's profit or loss allocated to each outstanding share of common stock. (For the six months ended June 30, 2025, the net loss per share was $0.04, indicating ongoing unprofitability on a per-share basis.)

Year-Over-Year Comparison

Compared to the prior year's six-month period, Bespoke Extracts has seen a significant revenue increase of 21.4% to $653,712, and a reduction in net loss from $575,013 to $465,627. However, the company's financial health has deteriorated in other key areas. The cash position has plummeted from $24,791 to a critical $1,363, and the working capital deficit has widened considerably. While gross profit margin improved, operating expenses remain a challenge, and the company continues to face substantial doubt regarding its ability to continue as a going concern.

Key Financial Figures

• $0.001 — he registrant's common stock, par value $0.001. TABLE OF CONTENTS Page No. PART I

Filing Documents

• ea0252426-10q_bespoke.htm (10-Q) — 627KB
• ea025242601ex31-1_bespoke.htm (EX-31.1) — 12KB
• ea025242601ex32-1_bespoke.htm (EX-32.1) — 4KB
• 0001213900-25-081047.txt ( ) — 3941KB
• bspk-20250630.xsd (EX-101.SCH) — 30KB
• bspk-20250630_cal.xml (EX-101.CAL) — 35KB
• bspk-20250630_def.xml (EX-101.DEF) — 188KB
• bspk-20250630_lab.xml (EX-101.LAB) — 346KB
• bspk-20250630_pre.xml (EX-101.PRE) — 201KB
• ea0252426-10q_bespoke_htm.xml (XML) — 345KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1 Item 1.

Financial Statements

Financial Statements 1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 13 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 15 Item 4

Controls and Procedures

Controls and Procedures 16

- OTHER INFORMATION

PART II - OTHER INFORMATION 17 Item 1.

Legal Proceedings

Legal Proceedings 17 Item 1A.

Risk Factors

Risk Factors 17 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 17 Item 3. Defaults Upon Senior Securities 17 Item 4. Mine Safety Disclosures 17 Item 5. Other Information 17 Item 6. Exhibits 17 i PART I

Financial Statements

Item 1. Financial Statements. Bespoke Extracts, Inc. Condensed Consolidated Balance Sheets June 30, December 31, 2025 2024 Assets Current assets Cash $ 1,363 $ 60,305 Accounts receivable, net 101,007 57,276 Prepaid expense 10,645 15,150 Inventory, net 41,721 32,526 Total current assets 154,736 165,257 Furniture and equipment, net 27,104 31,342 License 10,000 10,000 Right of Use Asset 63,198 140,489 Deposits 12,000 12,000 Total assets $ 267,038 $ 359,088 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued liabilities $ 1,344,241 $ 958,276 Note payable 15,000 20,000 Advances - related party 66,872 66,872 Operating lease liability 59,353 73,523 Total current liabilities 1,485,466 1,118,671 Long-Term liabilities Notes payable -- secured (Net of discount of $ 61,427 and $ 68,649 , respectively) 298,573 241,351 Notes payable 169,000 169,000 Note payable - related party 849,500 849,500 Long-Term Operating Lease Liability 3,805 72,504 Total liabilities 2,806,344 2,451,026 Commitments and contingencies (Note 8) Stockholders' Deficit Preferred stock, par value $ 0.001 , 50,000,000 shares authorized, 0 share issued and outstanding as of June 30, 2025 and December 31,2024, respectively - - Series C Convertible Preferred Stock, $ 0.001 par value, 1 share designated; 1 share issued and outstanding as of June 30, 2025 and December 31, 2024, respectively, stated value $ 24,000 . - - Common stock, $ 0.001 par value: 3,000,000,000 authorized; 11,153,220 and 11,153,220 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 11,151 11,151 Common stock to issue 6,478 shares - - Additional paid-in capital 24,319,286 24,301,027 Accumulated deficit ( 26,869,743 ) ( 26,404,116 ) Total stockholders' deficit ( 2,539,306 ) ( 2,091,938 ) Total liabilities and stockholders' deficit $ 267,038 $ 359,088

financial statements

financial statements. 1 Bespoke Extracts, Inc Condensed Consolidated Statements of Operations For the three months ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Sales $ 390,553 $ 278,163 $ 653,712 $ 538,591 Cost of products sold 193,054 172,046 345,434 329,893 Gross Profit 197,499 106,117 308,278 208,698 Operating expenses: Selling, general and administrative expenses 337,625 325,885 650,778 673,744 Professional fees 21,832 30,475 64,796 88,000 Total operating expenses 359,457 356,360 715,574 761,744 Loss from operations ( 161,958 ) ( 250,243 ) ( 407,296 ) ( 553,046 ) Other income / (expenses) Interest expense ( 43,148 ) ( 10,652 ) ( 58,331 ) ( 21,967 ) Total other (expense) / income ( 43,148 ) ( 10,652 ) ( 58,331 ) ( 21,967 ) Loss before income tax ( 205,106 ) ( 260,895 ) ( 465,627 ) ( 575,013 ) Provision for income tax - - - - Net Loss $ ( 205,106 ) $ ( 260,895 ) $ ( 465,627 ) $ ( 575,013 ) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic and Diluted 11,153,220 10,168,220 11,153,220 10,168,220 NET LOSS PER COMMON SHARE OUTSTANDING Basic and Diluted $ ( 0.02 ) $ ( 0.03 ) $ ( 0.04 ) $ ( 0.06 ) See the accompanying notes to the condensed consolidated

financial statements

financial statements. 2 Bespoke Extracts, Inc Condensed Consolidated Statement of Stockholders Deficit For The three and six months ended June 30, 2025 and June 30, 2024 (Unaudited) Series C Preferred Preferred Preferred Preferred Common Common Additional Shares Par Shares Par Shares Par Paid-in Accumulated Outstanding Amount Outstanding Amount Outstanding Amount Capital Deficit Total Balance March 31, 2024 - $ - 1 $ - 10,168,220 $ 10,166 $ 23,697,971 $ ( 25,680,759 ) $ ( 1,972,622 ) Warrants issued with financing - - - - - - 4,596 - 4,596 Stock option expense - - - - - 56,784 - 56,784 Net loss for the three months ended June 30, 2024 - - - - - - - ( 260,895 ) ( 260,895 ) Balance June 30, 2024 - $ - 1 $ - 10,168,220 $ 10,166 $ 23,759,351 $ ( 25,941,654 ) $ ( 2,172,137 ) Series C Preferred Preferred Preferred Preferred Common Common Additional Shares Par Shares Par Shares Par Paid-in Accumulated Outstanding Amount Outstanding Amount Outstanding Amount Capital Deficit Total Balance March 31, 2025 - $ - 1 $ - 11,153,220 $ 11,151 $ 24,319,286 $ ( 26,664,637 ) $ ( 2,334,200 ) Warrants issued with financing - - - - - - - - Stock option expense - - - - - - - - Net loss for the three months ended March 31, 2025 - - - - - - - ( 205,106 ) ( 205,106 ) Balance June 30, 2025 - $ - 1 $ - 11,153,220 $ 11,151 $ 24,319,286 $ ( 26,869,743 ) $ ( 2,539,306 ) Series C Preferred Preferred Preferred Preferred Common Common Additional Shares Par Shares Par Shares Par Paid-in Accumulated Outstanding Amount Outstanding Amount Outstanding Amount Capital Deficit Total Balance December 31, 2023 - $ - 1 $ - 10,168,220 $ 10,166 $ 23,631,918 $ ( 25,366,641 ) $ ( 1,724,557 ) Warrants issued with financing - - - - - - 20,231 - 20,231 Stock option expense - - - - - 107

financial statements

financial statements. 3 Bespoke Extracts, Inc Condensed Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2025 2024 Cash flows from operating activities Net Loss $ ( 465,627 ) $ ( 575,013 ) Adjustments to reconcile net loss to net cash used in operating activities Depreciation 4,238 4,402 Amortization of right of use asset, net 20,248 34,191 Amortization expense for prepaid expenses for consulting shares - 8,149 Amortization of debt discount 22,521 3,075 Stock based compensation and stock option expense 2,960 107,202 Changes in operating assets and liabilities: Accounts receivable ( 43,731 ) ( 13,959 ) Prepaid expenses 4,505 ( 11,195 ) Inventory ( 9,195 ) ( 16,521 ) Accounts payable and accrued liabilities 385,965 368,138 Operating lease liability, net ( 25,826 ) ( 33,785 ) Net Cash (used in) operating activities ( 103,942 ) ( 125,316 ) Cash flow from financing activities Proceeds from advances - related party - 8,500 Proceeds of notes payable 2,000 Repayments of notes payable ( 7,000 ) - Proceeds from secured notes payable 50,000 135,000 Net cash provided by financing activities 45,000 143,500 Net increase / (decrease) in cash ( 58,942 ) 18,184 Cash at beginning of period 60,305 6,607 Cash at end of period $ 1,363 $ 24,791 Supplemental disclosure of cash flow information Cash paid for interest $ - $ - Cash paid for income taxes $ - $ - Noncash investing and financing activities: Warrants issued for debt financing $ 15,299 $ 15,635 Reduction in right of use asset and lease liability due to lease amendment $ 57,043 $ - See the accompanying notes to the condensed consolidated

financial statements

financial statements. 4 BESPOKE EXTRACTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2025 (Unaudited) 1. NATURE OF OPERATIONS, SIGNIFICANT ACCOUNTING POLICIES AND GOING CONCERN Bespoke Extracts, Inc. is a Nevada corporation focused on operating in the regulated cannabis markets in the United States. Through Bespoke Extracts Colorado, LLC ("Bespoke Colorado"), we operate a marijuana infused products production facility in Aurora, Colorado. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Bespoke Extracts, Inc., and its wholly owned subsidiary Bespoke Extracts Colorado, LLC (collectively, the "Company"). All inter-company balances have been eliminated. The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). These of the consolidated financial statements and have been prepared on a consistent basis using the accounting policies described in the summary of accounting policies included in the Company's 2024 Annual Report on Form 10-K (the "Form 10-K"). Certain information and note disclosures normally included in the financial statements prepared in accordance with US GAAP have been condensed, or omitted pursuant to such rules and regulations, although the Company believes that the accompanying disclosures are adequate to make the information presented not misleading. The accompanying unaudited financial statements should be read in conjunction with the financial SEC. Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

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View this 10-Q filing on SEC EDGAR